People's Leasing Company, the market leader in the growing leasing industry, will go public with an IPO on 3rd November 2011. At the offer price of LKR 18.00, we believe PLC, a subsidiary of the state owned People's Bank, offers compelling investment value. In addition to the access to captive leasing portfolios of the parent, PLC is also able to operate on a significantly lower cost model with their ability to piggyback on the parent's branch network. With a leasing portfolio of 25% of the specialized leasing companies' asset base, PLC's disbursements dwarf even the Licensed Commercial Banks' leasing segments. Our TP of LKR 22.00 is based on relative multiples (earnings and book) considering PLC's competitive positioning. SUBSCRIBE.
BRS Equity Research | Bartleet Religare Securities (Pvt) Ltd, Sri Lanka